KUALA LUMPUR (Aug 7): The FBM KLCI dipped 0.11% in early trade this morning as Genting-linked stocks weighed, against the backdrop of mixed regional markets.

At 9.05am, the FBM KLCI dipped 1.84 points to 1,609.95.  

The early decliners included Genting Malaysia Bhd, Heineken Malaysia Bhd, Genting Plantations Bhd, Genting Bhd, Hartalega Holdings Bhd, Hap Seng Consolidated Bhd, Public Bank Bhd, Caely Holdings Bhd and Sarawak Consolidated Industries Bhd.

Asian equities looked set for a mixed start Wednesday following a rebound in U.S. stocks in signs of some relative calm following the rout in global shares at the start of the week, according to Bloomberg.

Futures pointed higher in Japan and Australia, though contracts indicated potential for more losses in Hong Kong. The S&P 500 Index surged 1.3% after its 3% slide the previous session. As China’s move to stabilize its currency fueled speculation cooler heads will prevent a full-blown trade war, the yen weakened and the yuan climbed. Treasuries gave back some of Monday’s surge, which had created the most extreme yield-curve inversion since the lead-up to the 2008 financial crisis. Assets in India and New Zealand will be in focus with monetary policy decisions due in both countries Wednesday, it said.

CGSCIMB Retail Research said despite the escalating US-China trade tension, the local bourse snapped its sharp early morning sell-off and closed 1.3 points higher on Tuesday.

The research house said while the trend for the index is not up, the short-term selling pressure is unlikely to be overly intense following yesterday’s complete recovery from the sharp sell-off. 

“Bargain-hunting activities could potentially set in today, with a resistance seen at 1,620.

“Longer term, we are of the view that the index is expected to trade in a range bound mode as the investors are likely anxious about a possible ‘Currency War’ if the US-China trade war continues to escalate.

“Meanwhile, export-oriented stocks, such as PCCS Group Bhd, may be back in favour again following the recent Ringgit’s sharp decline against the greenback. Resistance: 1,620 & 1,640. Support: 1,600 & 1,572,” it said.